After weeks of media analysts foretelling the doom of the company, Apple has held its quarterly conference call announcing its financial results from the last three months. During the Q1 2013 earnings call, which took place today in California, Tim Cook revealed that Apple has sold more iPhones and iPads than ever before, making September to December last year the most successful three-month period since the company started trading.
However, the results weren’t enough to stop the downward spiral of stock prices for Apple – pre-market trading is currently almost 10 per cent down since yesterday, with a loss of $45billion. Since an all-time high of $700 last year, prices for Apple’s stock has dipped more than 30 per cent to $485 a few days ago. Despite the record-breaking quarter, it seems that even increased profits may not be able to stop the drop.
iPhone sales hit a record-breaking 47.8 million (compared with 37 million in the same year-ago quarter), with iPad mini helping the tablet line bring in sales of an impressive 22.9 million (up from 15.4 million a year ago). Macs sales dropped to 4.1 million from 5.2 million last year, which Tim Cook explained was due to supply constraints, while the newly-refreshed iPod lineup only managed 12.7 million, down from 15.4 million a year ago.
The result of these sales is a record revenue of $54.5 billion and a net quarterly profit of $13.1 billion, giving Apple a total of $137.1 billion in the bank. Last year’s quarterly profits were £13.06 billion, resulting in flat growth year-on-year, which may worry some investors and be the cause of the drop.
It will be interesting to keep an eye on the stock price of Apple stock over the next few weeks as news stories and rumours cause the price to change again. However, with a packed product lineup expected to land throughout this year, there’s a good chance that Apple will survive this drop in price.